Copper Value 11-Week Roller Coaster –
Since February 1st, copper value has undulated violently, with 15 moves of 5 cents/lb or more. Weekly changes have averaged 12.8 cents/lb, more than 3 cents/lb higher than the average change of the prior 11 weeks was 9.4 cents/lb. Overall, Cu Comex is down 13.8 cents/lb since February 1st.
“Markets and uncertainty have become much more unstable in the past 3 months. I wish I had more fingers to count the numerous issues that are driving this uncertainty: China’s scrap import restrictions, a potential trade-war, the fear of an all-out war with North Korea, the US political landscape… I could go on and on,” said Jason Peterson, the Business Development Manager at Calbag Metals in Portland, OR.
“There was possible, long-term upward movement last week with the announcement of 2 copper mines decreasing production, but those gains were short-lived,” Jason continued, “That tells me there is lots of downward pressure and traders are trying to beat the market for quick gains without long-term intentions.”
With little seen on the horizon to quell the storm it appears as this level of volatility will be the new normal for the immediate term. Buckle-up!
Calbag Metals provides metal market charts with current day, 30, 60 and 90 day history.